SM-LED China Banking Corp. has returned to the offshore debt market for the first time since the Asian currency turmoil with a deal to raise $158 million through a three-year syndicated loan facility.
The facility, in which regional and international banks participated, carries an interest margin of 1.4 percentage points a year over the three-month Libor (London interbank offered rate), the bank said in a statement.
The facility marked China Bank’s successful return to the international markets since its $125-million issuance of floating rate certificates of deposit in 1996 and 1997.
Proceeds from the new loan would be used for general corporate purposes and to support the growth of China Bank’s dollar assets, the bank said.
“We are pleased with the positive response of the international lenders to this transaction. It reflects the confidence in China Bank’s solid fundamentals—strong capital levels, well diversified loan portfolio and quality assets and strong balance sheet with sustainable growth,” said China Bank president Ricardo Chua.
The syndication attracted strong interest from financial institutions based in Asia and the Middle East, some of which were supporting China Bank for the first time, the bank said.
Australia and New Zealand Banking Group Ltd. acted as the lead arranger and bookrunner. KDB Group and Mizuho Bank Ltd (Singapore branch) and Doha Bank were the mandated lead arrangers. Other arrangers were Mega International Commercial Bank Co. Ltd., CTBC Bank Co. Ltd. Singapore, The Shanghai Commercial and Savings Bank Ltd., Taiwan Cooperative Bank and Taishin International Bank Co Ltd. Doris Dumlao-Abadilla